Stellantis takes back 69.1 million common shares from 2017 Vauxhall-Opel acquisition.
Stellantis has agreed on a deal to buy back 69.1 million common shares from General Motors (GM) in exchange for more than £910m (AUD$1.6bn), plus 1.2m common shares in French vehicle components manufacturer Faurecia.
The repurchase agreement, due to take place today, consists mainly of a €923m (AUD$1.37bn) payment for the shares via equity warrants, plus the aforementioned Faurecia stock.
A €130m (AUD$194m) fee will be also paid for rights to dividends paid by Peugeot SA (PSA) and Stellantis, of which PSA is now part.
The move will allow Stellantis – formed in 2021 as a merger between PSA and Fiat Chrysler Automobiles (FCA) – to consolidate its market position and improve its ability to self-determine. Common shares allow holders to play a role in major company decisions such as board appointments and strategy.
In July, Stellantis agreed a mechanism by which it could repurchase 99.2m common shares – 3.16 per cent of its capital – from Dongfeng Motor International, but at Dongfeng’s discretion.
These moves follow a strong first half of 2022 for Stellantis, during which the conglomerate’s net revenues increased by 17 per cent year on year to €88 billion (AUD$1.3bn). Its profits were up 34 per cent, to €8bn (AUD$12bn).